Alon USA Selected as 'Stalking Horse' Bidder for the Bakersfield Refinery
DALLAS, Feb. 2 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) (the "Company") announced today that it has been selected as the "stalking horse" bidder for the Bakersfield, California refinery from Big West of California, LLC, a subsidiary of Flying J Inc. Completion of the acquisition is subject to an auction process, bankruptcy court approval and customary regulatory approval.
The Bakersfield refinery is located in California's Central Valley and has the capacity to refine up to 70,000 barrels per day of crude oil. The refinery is supplied by crude oil produced in the San Joaquin Valley with its products marketed in California, and is a major provider of motor fuels in central California.
If the acquisition is successfully completed, the Company anticipates using certain equipment from Bakersfield at its other refineries and connecting the Bakersfield refinery by pipeline to its refinery in Paramount, California so that vacuum gas oil may be sent from Paramount to Bakersfield for further processing. The purchase price of the Bakersfield transaction, including the acquisition of most of Big West's permitted Clean Fuels Project equipment, consists of $40 million in cash and an amount equal to the value of acquired inventory as of the closing date of the transaction.
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is a leading producer of asphalt, which it markets through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the FINA brand at these locations and at approximately 640 distributor-serviced locations.
Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes, including expectations regarding consummation of the transaction and operations of the Bakersfield refinery. These expectations may or may not be realized. Actual results could differ materially from those expressed in the forward-looking statements contained in this press release because of a variety of factors, including the imposition of conditions or impediments to the closing of the transaction, and changes in market or other conditions affecting operations of the Bakersfield refinery following the acquisition. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.
Contacts: |
Claire A. Hart, Senior Vice President |
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Alon USA Energy, Inc. |
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972-367-3649 |
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Investors: Jack Lascar/Sheila Stuewe |
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DRG&E / 713-529-6600 |
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Media: Blake Lewis |
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Lewis Public Relations |
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214-635-3020 |
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Ruth Sheetrit |
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SMG Public Relations |
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011-972-547-555551 |
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SOURCE Alon USA Energy, Inc.
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